Americans have spent nearly $450 extra per household on rising energy costs during the Iran war, according to an analysis shared exclusively with CNBC’s Steve Liesman.
The average household has shelled out $447.19 for additional fuel-related expenses since the conflict began on Feb. 28, data from Moody’s Analytics found. That’s cumulatively cost American consumers nearly $60 billion as gas prices and airline fares have surged.
Moody’s data puts a dollar amount on a portion of the economic pain Americans are feeling as the war reaches its three-month mark. Higher energy costs can force consumers to raid their savings and lean more on debt to cover expenses.
“Unless the war ends soon, financially pressed consumers will have no option but to turn more cautious in their spending, threatening the already soft economy,” said Mark Zandi, Moody’s chief economist.
If prices stay at current levels, the average household could take a hit of almost $2,000 at the one-year mark of the war, Zandi said.
Roughly half of the increased energy spending so far comes from higher gasoline prices. The average unleaded gallon in the U.S. cost about $4.39 on Friday, up more than 47% since the start of March, according to AAA.
Pricier diesel, which is used in vehicles like delivery trucks and boats, has resulted in more than $20 billion in additional expenses for consumers. The price of diesel has similarly jumped roughly 47% since the beginning of March to around $5.52 a gallon, per AAA.
Consumers have given up nearly $10 billion as a result of rising costs for jet fuel. Airline fares climbed more than 20% in April compared with 12 months ago, federal government inflation data shows.
That nearly $450 impact more than erased the boost of $384 per household from bigger tax returns this year under President Donald Trump’s “big, beautiful bill,” according to Moody’s. Most of the benefits from larger tax cuts have already been exhausted, Zandi said.
Goldman Sachs said it expects higher energy prices to “erode” consumers’ spending power through the rest of 2026. It should specifically hamper lower-income households that spend a larger percentage of budgets on food and energy, the bank said.
Costco saw “record-breaking” gas volumes at the end of its fiscal quarter as drivers sought out its lower-priced fuel, the wholesaler said Thursday. McDonald’s CEO Chris Kempczinski warned this month that consumer spending — specifically among lower-income cohorts — “may be getting a little bit worse” as energy prices pinch pocketbooks.
Turning to savings, debt
Consumer spending rose 0.5% from March to April, according to government figures released Thursday. But other data points show that isn’t necessarily coming from discretionary funds.
Income growth came in flat for April, missing the consensus forecast among economists for a 0.4% increase.
The personal savings rate fell to 2.6% in April, one of the lowest readings since the global financial crisis. It’s far off highs above 31% seen in 2020, signaling that consumers have continued to spend through pandemic stimulus and rainy-day stashes amid inflationary pressures.
American credit card debt came in at $1.25 trillion in the first quarter, up close to 6% from a year ago, the New York Federal Reserve said this month. That’s near the all-time record set at the end of 2025.
“Consumers are increasingly facing an income squeeze, which is forcing them to use savings, credit and wealth to sustain their spending patterns,” said Gregory Daco, chief economist at EY-Parthenon. “What we’re seeing is, essentially, the use of savings to offset weak income growth.”
— CNBC’s Steve Liesman and Betsy Spring contributed to this report.
